0
Conceptual difference between marginal cost of capital and weighted average cost of capital?
Wiki User
∙ 14y ago
WACC is the total average cost of capital to company which is calculated by taking into account the weights of all type of capital existed at a particular date in the capital structure of the company (Equity, Debt, bonds, debentures etc).
while the MCC is the incremental cost of capital which comes into existence when fresh capital is raised. It will depend on the type of capital raised, its weight and its cost.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is the difference between Average method vs weighted average method?
in weighted average method we assigns the weight to the averages while in average methods we dnt do this
What is the difference between average and weighted average?
weighted average is an average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average.
Difference between simple and weighted average?
In a simple average every value is worth the same, but in a weighted average, the frequency of each value is taken into consideration.
What is the difference between price and average cost?
marginal cost
If a company's debt is low does marginal cost of capital apply?
Weighted average cost of capital includes cost of debt and cost of equity. Thus irrespective of existing proportion of debt and equity, the marginal cost is always applicable.
Weighted average atomic mass?
What is weighted average atomic number
Is there any difference between expected value and arithmetic mean?
There is. Arithmetic mean is simple average of numbers not weighted by anything. However in EV, the numbers are weighted by their probability
How do you find marginal average cost?
Marginal cost comes from the costs of producing just one more of something.
Is The Dow Jones Industrial Average a market value weighted or price weighted index?
The Dow Jones Industrial average is a price weighted index.
What do you add to your unweighted average?
You can't convert an unweighted average into a weighted average simply by adding something. You have to do the whole calculation for the weighted average.
What is the difference between value weighted index and equal weighted index?
Value weighted index is a market average such as Standard & Poor's 500 Index that takes into account the market value of each security rather than calculating a straight price average. An equal weighted index is a type of weighting that gives the same weight, or importance, to each stock in a portfolio or index fund. The difference is one gives individual value and other gives one value to all.
What Relation between marginal cost and average cost?
relation ship between average cost and marginal cost
